Nykaa Raises INR 2,395.8 Cr From Anchor Investors

A day ahead of the opening of its initial public offering (IPO), FSN E-Commerce, the parent company of online lifestyle and beauty products marketplace, Nykaa, has raised over INR 2,395.84 Cr by allocating nearly 2.13 Cr shares to 174 anchor investors.

The investors subscribed to the shares at a value of INR 1,125 per share, an upper limit of the IPO price band (INR 1,085 – INR 1,125).

In a regulatory filing, FSN E-Commerce said, “Under Anchor Investors (AIs) portion in the public issue of FSN E–Commerce Ventures Limited, 21,296,397 equity shares have been subscribed today at Rs 1,125 per equity share.”

The anchor investors included international investors like Blackrock, Fidelity International, the Government of Singapore and the Monetary Authority of Singapore. 

Out of the total allocation to the Anchor Investors, 7,098,801 equity shares, 33.33% of the total allocation to anchor investors were allocated to 21 domestic mutual funds through a total of 93 schemes.

The IPO of the ecommerce unicorn will open on Thursday, October 28. As per the startup’s red herring prospectus (RHP), its IPO will include a fresh issue of INR 630 Cr and an offer for sale (OFS) of up to 41,972,660 shares.

According to the company’s DRHP filing, its offer initially included a fresh issue of shares up to worth INR 525 Cr and an offer-for-sale of equity shares up to 43,111,670 equity shares. However, the company later raised its fresh issue size.

At the estimated price band, the company will raise funds in the range of INR 4,554.03 Cr – INR 5,351.92 Cr.

Under the OFS, Sanjay Nayar Family Trust, the company’s promoter is offering up to 4.8 Mn shares. Nykaa’s investors — TPG Growth IV SF Pte Ltd and Lighthouse India Fund III would sell up to 5.421,510, and 4,844,620 shares, respectively.

Unlike most Indian startups that have filed the DRHP, Nykaa’s promoters continue to hold over 50% share in the company.

Falguni Nayar, the founder of the ecommerce unicorn, along with her husband Sanjay Nayar, their children Anchit Nayar and Adwaita Nayar hold 53.5% share in the company, as per the DRHP. 

Founded by former investment banker Nayar in 2012, Nykaa has emerged as a go-to-ecommerce platform for beauty and fashion products. The company competes against heavily invested funded giants such as Amazon, Myntra, and Flipkart.